AT&T Corp. won significant regulatory relief that will let it cut prices at a moment’s notice, introduce new services whenever it wants and raise the level of competition in the long-distance marketplace.
The Federal Communications Commission voted unanimously to do away with AT&T’s status as the nation’s “dominant” long-distance phone company, clearing the way for the industry giant to change the rates it charges residential customers more easily and more quickly.
The “dominant” classification had forced AT&T to wait 45 days or more to cut rates or start discount plans. All other companies need to wait only a day.
Now, AT&T will have the same flexibility as its competitors.
The waiting period kept AT&T–which has a 60 percent share of the $70 billion annual long-distance market–from responding quickly to rate cuts or discounts introduced by chief rivals MCI Communications Corp. and Sprint Corp., the company said.
